The report said that Michelin had discussed with the local labor department about closing the factory at the end of October, but the labor department has been trying very hard to convince Michelin to give up the closure plan. The Michelin Japan plant is located in the Gunma area and is the only Michelin factory in Japan that produces high performance tires. In the past few months, with the declining demand in the Japanese car market, Michelin suffered losses from the decline in market demand just like other tire manufacturers. The closure of the Michelin factory in Japan will expose 300 workers to unemployment. It is reported that Michelin intends to withdraw its investment from the Japanese market and move to emerging markets such as China and India that are rapidly developing. Michelin had previously announced that in order to reduce losses
According to Nikkei News, French tire giant Michelin is currently considering closing down its Japanese factory in mid-2010.